Treasuries Close Slightly Higher After Recovering From Early Weakness

(RTTNews) - After moving to the downside early in the session, treasuries regained ground over the course of the trading day on Tuesday.

Bond prices climbed well off their early lows, eventually ending the day slightly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.0 basis point to 4.086 percent.

The early weakness among treasuries extended the pullback seen over the two previous sessions, as traders continued to cash in on recent strength in the bond markets.

Selling pressure waned over the course of the session, however, as traders look ahead to the release of payroll processor ADP's report on private sector employment on Wednesday.

Economists currently expect private sector employment to edge up by 10,000 jobs in November after rising by 42,000 jobs in October.

The data could impact the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

CME Group's FedWatch Tool is currently indicating an 89.2 percent chance the Fed will cut rates by another quarter point, up from 63.0 percent a month ago.

Reports on service sector activity, personal income and spending and consumer sentiment may also attract attention in the coming days.